Every investors knows the feeling. The pain of searching through hundreds, maybe even thousands, of stocks before you see it. Glowing like a small beacon of hope, it's your next "best idea": The one business in the haystack of mediocrity that has everything you're looking for.
For me, that best idea is hybrid mREIT Two Harbors (NYSE:TWO).
Amidst the excitement of finding such an attractive opportunity, however, investors will fail to do the most important thing of all, and that's finding the bear case. As Warren Buffet has said, "Never invest in a businesses you cannot understand."
That doesn't mean just understanding the upside, but all sides, the good and the bad. With that in mind, the slideshow below has the top 7 reasons to sell Two Harbors.
Dave Koppenheffer has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
A Primer on How to Invest in REITs
Here are a few words on why, and how, to invest in REITs.
5 Top Dividend Stocks in Mortgage REITs
Mortgage REITs like these have some of the highest dividends in the market, but it's important to know the risks before investing.
3 REITs for a Rising-Interest-Rate Environment
When the Federal Reserve starts to raise rates, here are three REITs you may want in your portfolio.